Numerous renowned musicians are facing serious allegations regarding the improper utilization of Covid relief funds, raising eyebrows across the music industry.

As detailed in a report by Business Insider, a number of high-profile artists have reportedly misappropriated substantial amounts from a pandemic relief initiative known as the Shuttered Venue Operators Grant. This fund was specifically designed to provide essential support to the arts sector during a time of unprecedented hardship.

Administered by the Small Business Administration, this grant aimed to ensure that struggling independent venues and arts organizations could survive the financial turmoil caused by the pandemic. Allegations indicate that artists such as Chris Brown, Marshmello, and Lil Wayne may have exploited the grant, which offered up to $10 million in financial assistance.

Discover more details about this troubling situation below…

The Shuttered Venue Operators Grant was designed to assist over 13,000 qualified entities. The Small Business Administration claimed to have employed “industry-leading fraud controls” to ensure that the distribution of funds was conducted ethically and transparently.

These grants were intended to cover “ordinary and necessary” expenses, with eligibility contingent on proving a 25% drop in revenue compared to the same period in 2019 and 2020. However, it appears that the grant’s focus was primarily on revenue loss, neglecting to account for other assets that the artists may possess.

The manner in which these grants were utilized has raised significant concerns among observers.

Reports indicate that Lil Wayne directed $1.38 million towards private jet travel and allocated an additional $2.14 million to settle a debt with his former manager.

Chris Brown is alleged to have received the full $10 million grant, with reports suggesting he pocketed $5.1 million for personal use and spent nearly $80,000 on a lavish birthday celebration.

Marshmello, a prominent DJ, reportedly compensated himself with the entire $9.9 million he received, making him the biggest beneficiary of the grant. He justified this by citing previous earnings from the prior year.

Other notable artists mentioned in the report include Steve Aoki, who allegedly paid himself $1.9 million from a $2.4 million grant, along with Shinedown, Rae Sremmurd, and members of Alice in Chains.

Business Insider consulted with a government accountability expert who suggested that the spending practices observed were questionable, if not potentially fraudulent.

Artists linked to the business management firm NKSFB reportedly garnered a staggering $207 million in support from the grant system.

A representative for NKSFB challenged Business Insider’s findings, asserting that the firm is reputable and that the publication’s inquiries reflected a lack of understanding regarding the matter. Lawyer Bryan Freedman stated, “NKSFB, one of the most respected business management firms in the world, does not comment on its clients’ financial information.”

In a statement to Business Insider, the Small Business Administration acknowledged that some grants awarded to artists are still under review due to ongoing third-party audits.

“Where credible evidence suggests funds were misappropriated or a grantee misrepresented their expenditures to the SBA, the agency’s robust fraud and waste oversight structure reviews such allegations,” a spokesperson elaborated. “When substantiated, the SBA and its law enforcement partners vigorously prosecute suspected wrongdoing. As a matter of policy, the SBA cannot comment on specific investigations or law enforcement action, whether planned or ongoing.”

Business Insider reached out to several artists mentioned in the report for their perspectives, but most did not respond to the inquiries.

We will continue to provide updates as more information regarding this situation becomes available.